Factors That Contribute to The Reputation a Popular Crypto Exchanges
There are plenty of crypto exchanges available across the market, but not all of them are credible and reliable. Various factors contribute to make an exchange a popular crypto exchange such as its trading volume, security, fee structure, user interface and a lot more.
This list of benchmarks will help you identify a popular crypto exchange for trading crypto assets.
Benchmarks to Select a Popular Crypto Exchange
- KYC on the exchange
- Payment gateways or supported payment methods
- Selection of supported crypto assets
- Fee structure of the trading platform
- Trading products and options
- Mobile application
- Trade execution speed
KYC on Crypto Exchanges
One of the key factors that determines either the platform you are considering is popular or not is its KYC requirements. KYC on popular crypto exchanges like Binance makes it mandatory to upload ID proof of use address and name, before the trader can make any kind of transaction. Strict and detailed KYC are important to identify if the exchange is trustworthy or not.
Payment Gateways or Supported Payment Methods.
Making payments or the process of buying crypto assets plays a key role in selecting and identifying a platform as popular crypto exchange. Because making payments and deposits on crypto trading platforms is a crucial activity. Every user looks for an exchange that the exchange they are looking for has various payment gateways so that they can deposit or withdraw their funds with ease. Popular crypto exchanges like Coinbase support bank or wire transfers, accept debt or Visa card, or even support fiat currencies.
Selection of Supported Crypto Assets
Another integral factor that makes a popular crypto exchange is its range of supported crypto assets. The concept behind making crypto asset support as a benchmark is that a wide selection of supported crypto assets means more chances of trade success. For example Paypal, it just sells four major crypto assets in two countries at comparatively higher price. This makes sense to loyal users, and they purchase it from Paypal. The same is the case with one of the most popular exchanges Coinbase, supporting multiple tokens and coin-pairs including, Shiba Inu-Tether, Solana-Bitcoin and Ethereum-Bitcoin. These crypto pairs enable direct trades within each other, instead of requiring two different transactions separately.
Fee Structure on Crypto Exchanges.
Trading fees on any exchange is the beneficial part for an exchange itself, yet is dangerous for a trader with thin chances of attaining potential profits. Trading platforms demand charges or fee on everything, from deposits to withdrawal, from selling and buying to futures trading, and from wallet transactions to loaning. Popular crypto exchanges either have flat sum or a specific percentage that they charge, with these rates fluctuating for various levels of clients and liable to change over the long run.
Trading Products & Options
The success and popularity of trading platform completely depends on the trading options available on it. For advanced for whom simple is not exciting enough, popular crypto exchanges like Binance has introduced the option of derivatives trading including benefits of leverages, lending, shorting, and NFT art sales.
Mobile Application
The current top 10 crypto exchanges in the crypto sphere have one thing in common that has enabled to be on this list is their mobile and desktop apps. These applications allow them to trade on the go anywhere and anytime. An easy-to-use mobile app is one of the most appealing factors for traders who do not have access to a larger screen and time for detailed price charts.
Trade Execution Speed
The speed of order or trade execution is another major factor that matters a lot in making an exchange popular and credible. No one wants to trade on a platform that takes forever to execute a trade or transfer. Unfortunately, for seasoned traders, when the market activity is at a peak and enormous opportunities open up, bigger trades often get delayed and due to out of the blue high traffic they miss out on other prospects. Likewise, users have observed they are obstructed from selling yet permitted to purchase at times of high market volatility. The exchanges claim that this is a method of keeping their user safe against any kind of fraudulent activities.
Conclusion
Summing it all up, on exchange is famous from the start, every popular exchange in the market has picked some things along the way which make them credible, safe, and highly recommended. These factors or benchmarks include KYC on the exchange, selection of supported crypto assets, payment gateways or supported payment methods, the fee structure of the trading platform, mobile application, trading products and options, trade execution speed.